From Taxes for Indonesia, The Role of Tax Compliance in Improfing Economic Stability

According to Law No. 28 of 2007 concerning general provisions and tax procedures, taxes are mandatory contributions to the state owed by individuals or entities that are compulsory based on law. force based on the Law, with no get a direct reward and is used for state purposes for the greatest prosperity of the people. From this definition, we can take several points, including

1.This tax is a mandatory contribution from a person or entity

2.Taxes are contraprestation or in other words, taxes do not provide benefits that are felt directly

3.The purpose of taxes is none other than to improve the welfare of society

Taxes are the highest source of revenue for the state. Taxes contribute more than 80% of the total revenue for state revenue. If the state revenue is high, the impact will be felt by the entire community. However, it cannot be denied that not all people realize the importance of taxes for the state. This is because taxes are counterproductive, which means that the benefits of this tax are not felt directly. In addition, the rampant practice of corruption has made trust in the government even lower. Based on data from the DJP, the level of tax compliance in 2022 was 83.2%. From this data, it means that there are still 16.8% of Indonesians who have not fulfilled their obligations to pay and report taxes. This figure is certainly large because the data is data from all over Indonesia.

Although taxes are mandatory, in reality there are still many taxpayers who have not paid and reported taxes on time. The achievement of the welfare of all Indonesian people is the obligation of everyone. Therefore, awareness from each individual is needed to increase revenue from the tax sector which will have a positive impact on economic stability, which in turn will have an impact on the welfare of all citizens. Economic stability can be interpreted as an economic situation that runs according to plan, controlled, and sustainable. Various efforts have been made by the government so that the economy in Indonesia can be said to be stable. One of them is through tax collection.

According to Edwin, many people do not know the role of taxes. In fact, Edwin also stated that there are still people who think that taxes have no benefits. From this statement, we can see one of the reasons why the economy in Indonesia is said to be unstable. Therefore, the role of various parties is needed to overcome this.

Tax revenue can be done through increasing tax compliance by socializing various programs that are shown to increase tax compliance. According to Mangoting and Sadjiarto, tax compliance is influenced by two factors, namely:

1.Internal factors, this factor comes from taxpayer self-awareness related to behavioral characteristics as a trigger in carrying out tax obligations.

2.External factors, this factor comes from outside the taxpayer, such as the environment and situation around the taxpayer.

Regulation of the Minister of Finance Number 192/PMK.03/2007, taxpayers are said to be compliant if they meet the following requirements:

a.On time in submitting notification letter

b.Do not have tax arrears for all types of taxes, except for tax arrears that have obtained permission to install or postpone tax payments

c.Financial statements audited by a Public Accountant or government financial supervision agency with an unqualified opinion for 3 (three) consecutive years

d.Never been convicted for committing a criminal offense in the field of taxation based on a court decision that has permanent legal force within the last 5 (five) years.

Research on tax compliance from 2005 shows that awareness of paying taxes, perceptions of the effectiveness of a good tax system, the level of trust in the legal system and government, has no partial effect on the willingness to pay taxes. While knowledge and understanding of tax regulations partially affect the willingness to pay taxes. Further research results show that the level of trust in the legal system and government has a positive effect on tax morale, while the perception of tax evasion and national pride has a negative effect on tax morale. According to Susanto, the main cause of taxpayers avoiding tax payments is past events that form negative public perceptions of tax agencies.

One of the roles of tax is stability. In fulfilling this role, of course, the role of various parties is needed in order to increase economic stability. As described above, understanding and knowledge about taxes, and the level of trust in the system and government have a positive effect on the willingness to pay taxes. The conclusions from the research results above can be the basis for the government to determine policies in improving economic stability, so that each policy and program runs effectively and efficiently. Every policy and program carried out by the government certainly has the aim of providing welfare and comfort for every community. However, if every program and policy is not supported by the community, it will certainly be in vain. Therefore, the contribution of various parties is needed in the context of economic stability which is the basis for the welfare of society, one of which is through taxes.

Reference

UU No 28 Tahun 2007 Tentang Ketentuan Umum dan Tata Cara Perpajakan.

Peraturan Menteri Keuangan Nomor 192/PMK.03/2007 Tentang Tata Cara Penetapan Wajib Pajak dengan Kriteria Tertentu dalam Rangka Pengembalian Pendahuluan Kelebihan Pembayaran Pajak.

Lutfiyanah, Khori. I. F., (2021). Faktor-Faktor yang Mempengaruhi Kepatuhan Membayar Pajak UMKM di Kota Pekalongan. Jurnal Ilmiah dan Akuntansi Keuangan. 3(2). hlm 339-355.